401(k) Plan Cost Calculator: The Impact of the SECURE Act 2.0

If you’re a small business starting a 401(k), you may be eligible for tax credits. Learn how SECURE Act 2.0 tax incentives may help you start a Human Interest 401(k) plan.

2024*
2025
$2,002.00$2,004.00
Base Service Fee$1,440.00$1,920.00
Per Employee Fee$63.00$84.00
One-time Setup Fee$499.00$0.00
-$1,000.00-$1,000.00
SECURE Act 2.0 Tax Credit for Retirement Plan
-$500.00-$500.00
SECURE Act Tax Credit for Auto-enrollment-$500.00-$500.00
Estimated 401(k) Plan Cost$1,002.00$1,004.00

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Disclosures and Notes

  • The 401(k) Plan Cost Calculator above is not tax or legal advice and is intended to estimate the cost of a Human Interest Inc. (HII) 401(k) plan’s recordkeeping and custody-related expenses, taking into account the tax credits available through the SECURE Act 2.0.
  • Cost calculations above assume a constant employee size, including highly compensated employees (HCE) and non-highly compensated employees (NHCE), and that headcount doesn't exceed 100*, in order to maintain eligibility for SECURE Act 2.0 tax credits. Costs are calculated based on the number of months remaining this year. Costs for subsequent years are based on 12 months of service.
  • Costs above reflect the fee for recordkeeping services and custody-related expenses paid to Human Interest Inc. (HII) of 0.05%. This fee is deducted monthly from the employee's account. A one-time setup fee of $499 may apply and is charged to the plan. A separate investment advisory fee paid to Human Interest Advisors (HIA) of 0.01% is deducted monthly from the employee's account and is not factored into the plan cost calculator above.

*Employees are based on the number of employees who made at least $5,000 in the preceding year. Other investment expenses, such as underlying mutual fund fees, are not included in the calculator.

Human Interest Inc. is an affordable, full-service 401(k) and 403(b) provider that seeks to make it easy for small and medium-sized businesses to assist their employees with investing for retirement. For more information, please visit humaninterest.com. Investment Advisory services are provided through Human Interest Advisors LLC, a Registered Investment Adviser and subsidiary of Human Interest Inc. For more information on our investment advisory services, please visit Human Interest Advisors | Human Interest .

This content has been prepared for informational purposes only, and should not be construed as tax, legal, or individualized investment advice. Neither Human Interest Inc. nor Human Interest Advisors LLC provides tax or legal advice. Consult an appropriate professional regarding your situation. The views expressed are subject to change. In the event third-party data and/or statistics are used, they have been obtained from sources believed to be reliable; however, we cannot guarantee their accuracy or completeness. Investing involves risk, including risk of loss. Past performance does not guarantee future results.

Learn more about 401(k) tax benefits

The Setting Every Community Up for Retirement Enhancement (SECURE) Act helped make 401(k) plans more accessible for small businesses. SECURE Act 2.0 expands on tax credits, offering even more incentives to offer a retirement plan.

Small businesses with up to 50 employees may be eligible for a tax credit to cover 100% of plan start-up costs, capped annually at $5,000/employer for three years. Businesses with 51-100 employees may be eligible for the original credits equal to 50% of administrative costs, capped annually at $5,000/employee for three years. Additionally, auto-enrollment provides a $500 tax credit and can help encourage employee participation.

These tax credits can add up to $16,500 and are available for three years.

How Human Interest can help

Technology has helped streamline 401(k) plan administration—which is great news for small business owners. Human Interest can help reduce your administrative burden and could drive costs down in the process. That way you can spend less time on back-end work and more time on what matters the most: running your business.

Want to learn more?

Disclosures

Investment advisory services are offered through Human Interest Advisors LLC, a Registered Investment Adviser and subsidiary of Human Interest Inc. An investment advisory fee is paid to Human Interest Advisors (HIA) of 0.01% of plan assets and a separate fee for recordkeeping services and custody-related expenses is paid to Human Interest Inc. (HII) of 0.05% of plan assets. Both fees are deducted on a monthly basis from the employee's account according to the HII and HIA Terms of Service. All prices are exclusive of applicable taxes. If the plan sponsor elects to hire an external investment advisor, the plan sponsor will pay such advisor as agreed between the plan sponsor and advisor. For more information, please see our pricing page. Similar services may be available at a lower cost from other vendors. Average fund fees as of 12/31/23. Asset-weighted average of mutual fund annual operating expenses ("expense ratio") for all plan participants invested in Human Interest Advisors' Model Portfolios ("Models"). Provided for illustrative purposes only. Actual, average fund expenses a participant experiences vary based on the specific Model selected, allocation changes to Models, whether participants opt out of Models and choose their own investments and allocations, or allocation drift, especially in volatile markets. Model allocations and underlying mutual fund expenses are subject to change. Before investing, carefully review the fund’s prospectus, which includes, among other things, a description of fees and expenses a fund will charge.